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Catastrophe Modeling
Equipping you to adapt and recover from any major disruption.
Catastrophe Modeling
Forecasters use a combination of data to get the most complete analysis possible so insurance
companies can determine potential loss's locations can sustain over a certain period. This allows
organizations to price products to balance market needs and potential costs, and how much risk they
should transfer to reinsurance companies.
Our Partnership Modeling Services
HUB International partnered with AIR-Touchstone
1. Earthquake Incorporates data from recent
Consulting Group that founded the CAT Modeling events, elements of earthquake science,
industry in 1987, and today models the risk from geographical location conditions and structural
building performance from businesses all over the
natural catastrophes and terrorism in more than 90 world.
countries. More than 400 insurance, reinsurance,
2. Fire Events based on key drivers such as
financial, corporate, and government clients rely on vegetation type, topography, and wind conditions.
AIR software and services for catastrophe risk Users of this model can estimate average annual
losses and probable maximum losses and simulate
management and AIR is a member of the Verisk probability distributions of insured loss for an entire
Insurance Solutions group at Verisk Analytics. portfolio as well as an individual property.
3. Flood Enables users to understand the frequency
General Principles and severity of flood risk across the entire risk
transfer chain, allowing clients to make informed
• Event/Hazard Modeling decisions. Our flood models facilitate capital
Incorporates statistical data to develop allocation, accumulation controls, reinsurance
pricing and portfolio management.
catastrophic events. These models vary by
type of catastrophe and are calculated 4. Tropical Wind Generates robust set of storm
events and estimates the magnitude, intensity, and
utilizing geography, history of events and location of the event to determine the amount of
spread of client resources and assets. damage and calculate the insured loss because of a
catastrophic event such as a hurricane.
• Vulnerability/Financial Modeling 5. Terrorism Modeling considers damage, including
Addresses the potential damage by the event building damage and injuries, from array of
conventional weapons, chemical,
(Earthquake, Fire, Flood, Tropical Wind and
biological/radiological, nuclear (CBRN) weapons,
Terrorism) to provide EP Curves for each and airplane crashes.
6. Winter Storm - Incorporates damage functions
approach. Ultimately, this is driven by variable specific to wind, precipitation, and temperature to
develop a realistic catalog of tens of thousands of
such as deductibles to determine the overall potential winter storms across the U.S.
potential monetary loss to the client or
7. Severe Thunderstorms - Incorporates the
insurance company. frequency, severity, and geographical distribution of
potential losses from straight-line winds, hail, and
tornadoes. While severe thunderstorm is a relatively
high frequency peril, aggregate losses can result in
extreme volatility in financial results.
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